ASX-listed Lincoln Minerals has signed a collaboration agreement with Canada-based SCN Canada to jointly investigate the use of graphite from its Kookaburra graphite project, in South Australia, in small modular nuclear reactors (SMRs).

The company said on Thursday that the agreement aligned with its strategy to identify high-value applications for graphite from the Kookaburra project, which hosts a 12.8-million-tonne resource grading 7.56% total graphitic carbon, while maintaining its primary focus on advancing the Minbrie copper project.

SCN, which trades as StarCore Nuclear, is developing SMRs based on high-temperature gas-cooled reactor (HTGR) technology, targeting the supply of small-scale, safe and carbon-free power to remote communities in Canada and internationally. High-purity graphite blocks are used in such reactors to moderate nuclear reactions, improving stability and safety during long-term operation.

Under the agreement, Lincoln and SCN will work collaboratively to identify opportunities for potential cooperation, including the possible supply of graphite for SMR applications, and to assess the technical suitability of Kookaburra material through further testwork.

“Global investment in nuclear energy is increasing to meet growing energy demands and to reduce reliance on carbon emitting energy sources. SMRs offer a reliable, always-on source of clean energy that can fill the gaps when solar and wind fall short, helping to prevent shortages and stabilise prices,” said Lincoln CEO Chris Wilcox.

He added that the agreement provided a pathway to unlock value from Lincoln’s graphite assets without diverting attention from its copper portfolio.

“There is substantial potential value in Lincoln’s 100% owned graphite at Kookaburra. We are excited to be partnering with SCN to explore a pathway to commercialising these assets by leveraging the detailed studies previously completed,” he said.

The agreement establishes a framework for collaboration over the next 12 months, during which the parties will work to align on project development parameters, including flowsheet design, product mix and potential commercial structures. Any binding arrangements would be subject to due diligence, metallurgical testwork, feasibility studies and the execution of definitive agreements.

Lincoln said that, should both parties elect to proceed, scoping and feasibility studies for a joint development concept could be completed by the end of calendar year 2026.

The Kookaburra graphite project is located on the Eyre Peninsula, about 35 km north of Port Lincoln, and benefits from near-surface mineralisation, existing infrastructure access and a high-grade core. A pre-feasibility study completed in 2024 outlined a 16-year mine life, upfront capital expenditure of $29-million and an after-tax net present value of $114-million, while subsequent testwork has demonstrated purification levels exceeding 99.95% total graphitic content, meeting specifications for battery anode material.